Stock code : 9824

SENSHU ELECTRIC CO.,LTD.

Outline
1 . Group Overview
2 . October 2023 Summary of 1st Quarter financial results
3 . Medium term management plan
4 . Reference data

SENSHU ELECTRIC CO.,LTD.

2

1 . Group Overview

SENSHU ELECTRIC CO.,LTD.

3

Group Overview
Established

November 18, 1949

SharesTokyo Stock Exchange Prime

Capital2,575,200,000yen [US$19Mil.]Type of industry

Wholesale distributor(Industry leader of electric wires general trading company)
No. of employees

799（Average age:40.2）

No. of subsidiaries ７ in Japan and ７ in overseas（China/Taiwan/Thailand/Philippines/Vietnam/USA）
No. of offices

17 in Japan

JapanAsia

SENSHU ELECTRIC CO.,LTD.

USA4Sales Channels of Electric Wires
Electric power

Communications(NTT etc.)(Each electric power
supply companies)

Electric wire
manufacturers

Electric machinery(General manufacturers)

Other domesticdemand(Steel/ship building etc.)

Direct demands
Automobiles(Related companies)
Electricalmaterials

Electrical facilities
materials sales
companies

Construction/
Electrical sales

Electricfacilities

Direct demands

Electricalconstruction
companies

SENSHU ELECTRIC CO.,LTD.

Sales channels of electric wire
Manufacturers
Our sales channels(Electrical materials)
Our sales channels(Direct demands)
Our sales channels(Electrical facilities)
Sales channels of our customers
5Major Customers (image)〈More than 3,500 Customers〉
Electricalmaterials(For Electrical facilities
materials salescompanies)

Electricfacilities(Electrical constructioncompanies)

Directdemands

There are approximately 1,100
major electric material storesthat are members of the union

ElectricalconstructionMore than 60,000 companies nationwide,
including small and medium-sized companies
Mainly large companies

Building/Mansions
Solar Power Generation
Offshore wind power generation facilities, etc.

Manufacturers of machines and robots that produce machine tools, automobiles,
semiconductors, etc.

(End-users)
Machine tools/industrial machines

Automobile facilities

SENSHU ELECTRIC CO.,LTD.

Semiconductor/liquid crystal facilities
6

Customers Composition（Non-consolidated）
October 2022

Power Cables
Covered Cables

FA Cables
Power Cables
Covered Cables

Non-Cables
Transition（％）

FA Cables

SENSHU ELECTRIC CO.,LTD.

7

Three Business Models
1

JUST IN TIME system

2

Original products

3

Cable assemblies(Electric wire terminal processing）

Electric wires of about 200,000 types

7 processing plants located& difficult to stock in terms of spacenationwide meet the needs for small-and theft due to their heavy weight.

lot, quick-delivery processing of wires

We have a warehouse floor space ofwith attached terminals, control

approximately 60,000 ㎡ in Japan

panels, and other products. We have

(Sapporo to Okinawa) with overalso established a system of

50,000 kinds of products, havecollaboration among our group

established a JUST IN TIME system.

FA cables (Factory Automation (FA)companies.

cables used for robots, etc.) with awire manufacturer and sold them as
original products. We accurately
grasp a wide variety of needs and playa role as a technical trading company.

SENSHU ELECTRIC CO.,LTD.

8

2.

October 2023 Summary of 1st Quarter financial results

SENSHU ELECTRIC CO.,LTD.

9

Consolidated income statements overview（Unit : million yen、％）

2022/10_1Q

Composition
ratio

2023/10_1Q

Composition
ratio

Increase or decrease

YoY

27,161

100.0

29,764

100.0

2,603

9.6

Gross profit

3,993

14.7

4,645

15.6

652

16.3

Selling, general andadministrative expenses

2,334

8.6

2,497

8.4

163

7.0

Operating profit

1,658

6.1

2,147

7.2

488

29.4

Recurring profit

1,766

6.5

2,263

7.6

497

28.2

Profit attributable to owners

1,194

4.4

1,520

5.1

326

27.3

Net salesof parent
Average copper price(Thousand yen/t)

1,158

1,205

SENSHU ELECTRIC CO.,LTD.

47

4.1

10

Consolidated Balance Sheet overview（Unit: million yen）

2022/102023/10_1Q

Increase ordecrease

Total current assets

67,91067,429△ 480

Total non-current assets

27,471

27,693221

Total assets

95,381

95,123△ 258

Total current liabilities

45,922

44,983

△ 938

3,059

3,14283

Total liabilities

48,982

48,126△ 855

Total shareholders' equity

45,06645,589523

Total net assets

46,39946,996597

95,381

95,123△ 258

Total non-current liabilities

Total liabilities and netassets

SENSHU ELECTRIC CO.,LTD.

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Forecast of consolidated financial results（Unit : million yen,％）2022/10_2Q

Composition
ratio

2023/10_2Q
Forecast

Composition
ratio

YoY

2022/10

Composition
ratio

2023/10
Forecast

Composition
ratio

YoY

Net sales55,154 100.0

56,600 100.0

Operating profit

3,536

6.4

3,650

6.4

3.2

7,464

6.6

7,800

6.6

4.5

Recurring profit

3,713

6.7

3,800

6.7

2.3

7,894

6.9

8,100

6.9

2.6

2,491

4.5

2,580

4.6

3.5

5,314

4.7

5,500

4.7

3.5

△ 0.9

1,195

Profit attributable toowners of parent
Average copper price(Thousand yen/t)

1,211

1,200

2.6

113,633 100.0

SENSHU ELECTRIC CO.,LTD.

118,200 100.0

1,200

4.00.412

Shareholder Return Policies
123

Dividend（Dividend increase of 20 yen to 80 yen）Setting stable dividend payment as our basic policy, we are paying dividends
considering and examining business results and retained earnings, etc.
comprehensively. Dividend increase by 20 yen to 80 yen forecast for the FY10/2023(interim dividend:40 yen, year-end dividend: 40 yen)

Treasury stock acquisition
We will acquire treasury stock in order to improveshareholder returns, improve capital efficiency,
and implement flexible capital policies in responseto changes in the business environment.

Stockholder benefit program(Once a year (at year end), 1 unit (100 shares) or more)・ Total number of acquire shares

200,000 shares・Total acquisition amount
600,000,000 yen（Acquisition period2022/12/9 to 2023/4/30）

Less then 1 year : Our original QUO card (1,000 yen)
One year or more : Our original QUO card (2,000 yen)

※ Stock split (from 1 to 2 shares)
2-for-1 stock split of common stock with a record date of October 31, 2022

SENSHU ELECTRIC CO.,LTD.

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3. Medium term management plan

SENSHU ELECTRIC CO.,LTD.

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Medium-Term Management Plan
Final Year October 2025
Net sales 125 billion yenROE More then 10.0％

Recurring profit（Unit:million yen）
Net sales

Recurring profit

140,000

113,633

120,000

100,000

8.5 billion yen

118,200

92,463
7,894

8,100

125,000

12,0008,500

10,0008,000

80,00060,00014,000

5,004

6,000

29,7642,263

40,000

4,000
2,000

20,000

00

21/10

22/10

23/10

25/10

(forecast)(forecast)

SENSHU ELECTRIC CO.,LTD.

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Medium-Term Management Plan ：SS2025
Sales of 125 billion yen, Recurring profit of 8.5 billion yen,
Achievement a return on equity (ROE) of more then 10%Carbon neutral , AutomatedIncrease sales in the direct demand sector by developing original products
and strengthening the processing sector

Improvement of the Just in Time system

AI・IoT・5G

Strengthening of sales in Tokyo and surrounding Kanto areas,and expansion of share for the other area

Sales products other than electric wires including own brand ones anddevelopment of new fields
Strengthening of global deployment(Improvement profitability of the Group)

Sustainability Management
Promotion of the Senshu Transformation Project
SENSHU ELECTRIC CO.,LTD.

EV

RenewableenergySemiconductor

Automated

New construction,
Review of production lines

Increased capitalinvestment will be ourbusiness opportunity.
16

Medium-Term Management Plan ：Capital Expenditures and Depreciation（unit：million yen）
3,500

● Hokuriku Branch

3,000

Scheduled to open in May 2023

2,500
2,000

● Nagoya FA Center

1,500

After 2024

1,000
500
0

23/10

24/10

25/10

(forecast)(forecast)(forecast)

605

1,962

1,751

1,463

547

627

－－

21/10

22/10

Capital Expenditures409

Depreciation

572

SENSHU ELECTRIC CO.,LTD.

17

Medium-Term Management Plan ：New Fields／Abil heater
Subterranean heated vinyl lines for agricultural use.
Abil heater

Contributes to CO2 emission reduction by directly heating soil inplastic greenhouses, etc., and increases harvest turnover (cycle)
by accelerating the speed of growth.

Contribute to the SDGs
Decarbonization and energy savings compared to boilers that use fuel.

Senshu Electric Nagakute House
Growing tomatoes and strawberries in Nagakute City, Aichi Prefecture,

Annual sales of 1 billion yen

in agribusiness by 2027

using aviru heaters.

Other
Exhibit at agricultural trade shows.
Developing a hot air heater.

SENSHU ELECTRIC CO.,LTD.

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Medium-Term Management Plan：Sustainability Management
MaterialitySDGs●Apr. 2022

Reduction of CO2 emissions

ETOPICS

Environmental conservation

Response to climate change

activities

Compliance with environmental laws

Published Environmental Reportand regulations●Dec.2022
Disclosure under TCFD

Strengthening quality control system

human rights

S

Creating a rewarding work
environment
Stable supply of goods andservices

Carbon neutrality by 2050
Medium-Term Goal

50% reduction compared

Strengthening information security

Respect and consideration forLong-Term Goal

Improving engagement with employees andbusiness partners
Promotion of health management and●Certification of”Excellent Health Management

to fiscal 2013 by 2030

Corporation 2022”

enhancement of health and safety
Promoting diverStrengthening information50％

security

CO2emissions

Strengthening quality control system
Improving engagement with employees andbusiness partners
Promotion of health management andenhancement of health and safety●GLTD insurance coverage

2013

Promoting diversity

CO2emis
sions

02030

2050

Compliance with laws and regulations

G

Establishment of a governanceThorough compliancesystemBCP (business continuity plan)●Jan. 27, 2023
Corporate Governance Report

Maintenance of the system

SENSHU ELECTRIC CO.,LTD.

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4. Reference data

SENSHU ELECTRIC CO.,LTD.

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Consolidated income statements overview（Comparison with previous FY）（Unit : million yen、％）

2022/10_1Q

2023/10_1Q

Increase or decrease

Net sales

27,161

100.0

29,764

100.0

2,603

9.6

Cost of sales

23,16885.3

25,119

84.4

1,950

8.4

Gross profit

3,993

14.7

4,645

15.6

652

16.3

2,334

8.6

2,497

8.4

163

7.0

1,658

6.1

2,147

7.2

488

29.4

Non-operating income

131

0.5

140

0.5

8

Non-operating expenses

230.1

230.1

0

1,766

6.5

2,263

7.6

497

Extraordinary income00.0

00.00

Extraordinary losses

00.00

0.0

0

1,766

6.5

2,263

7.6

497

Income taxes - current

400

1.5

540

1.8

140

Income taxes - deferred

156

0.6

186

0.6

30

1,209

4.5

1,537

5.2

327

15

0.1

16

0.1

1

1,194

4.4

1,520

5.1

326

27.3

47

4.1

Selling, general andadministrative expenses

Operating profit

Recurring profit

Profit before income taxes

ProfitProfit attributable
to non-controlling interests
Profit attributable to owners ofparent
Average copper price(Thousand yen/t)

1,158

1,205

SENSHU ELECTRIC CO.,LTD.

28.2

28.2

27.0

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Consolidated Balance Sheet overview（Unit: million yen）

2022/102023/10_1Q

Increase or

2022/10decrease

Cash and deposits

27,16526,601

Notes and accounts receivable - trade22,572

21,523

Electronically recorded

10,831

11,254

23

23

6,575

7,272

697 Income taxes payable

monetary claims - operating

Securities
Merchandise△ 564 Notes and accounts payable - trade△ 1,048 Short - term borrowings
423 Current portion of bonds payable
0 Current portion of long-term borrowings

2023/10_1Q

Increase or
decrease

41,214

41,909694

631

631

0114

114－

2011

△91,840586△ 1,253

767

357

△ 409

1,333

1,372

39

45,922

44,983△ 938

107

107－6060－Work in process

250

252

1 Provision for bonuses

Raw materials and supplies

238

271

33 Other Current liabilities

Other current assets

253

230

Total current assets

67,91067,429Property, plant and equipment

17,77918,022339

344

5 Long-term borrowings

9,352

9,326

△ 26 Retirement benefit liability

2,249

2,279

29

Other non-current liabilities

641

695

53

221 Total non-current liabilities

Intangible assets
Investments and other assets

Total non-current assets

27,471

27,693△ 23△ 480 Total current liabilities
243 Bonds payable

3,059

3,142

83

Total liabilities

48,982

48,126△ 855

Share capital

2,575

2,575

－

Capital surplus

2,690

2,690

－

Retained earnings

44,25545,060804

Treasury shares△ 4,454△ 4,736△ 281

45,06645,589

523

1,056

1,089

32

Total shareholders' equity
Total accumulated other comprehensive
incomeShare acquisition rights

3850

11Non-controlling interests

237

267

2946,399

46,996597

95,381

95,123△ 258

Total net assets
Total assets

95,38195,123△ 258 Total liabilities and net assets

SENSHU ELECTRIC CO.,LTD.

22Electric wire and copper price
There are two types of electric wires: copper and aluminum wires, and most of the wires we deal
with are copper wires. Therefore, the market price of copper is important for the sale of electric
wires.
The domestic copper quotation is determined by JX Nippon Mining & Metals based on the international
copper quotation determined by the London Metal Exchange (LME) and the exchange rate.
〈Copper price and monthly sales (non-consolidated)〉

SENSHU ELECTRIC CO.,LTD.

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Dividends and Dividend Payout Ratio
Plans to increase dividends
for 10 consecutive years in real terms（ yen,％ ）(Note) The Company conducted a 2-for-1 stock split of shares of common stock on November 1, 2022,
and the dividend payout ratio is calculated on the assumption that the stock split was conducted at the beginningof the previous fiscal year.

SENSHU ELECTRIC CO.,LTD.

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Trends in Main Indicators Red = FY10/2023 forecast Blue = Results310.9yen

ROE

11.5％

DOE
2.9％

BPS

Equity ratio
49.1％

Shareholder return rate

EPS

2,578.2yen

36.6％(Note) The Company conducted a 2-for-1 stock split of shares of common stock on November 1, 2022,
and calculated are based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

SENSHU ELECTRIC CO.,LTD.

25

Thank you for your attention.

Stock code : 9824

SENSHU ELECTRIC.,CO.LTD.

Notes on the content
None of the information on this document constitutes a solicitation to purchase or sellshares belonging to our company.
Please note that, due to various factors, future performance may differ from theseforecasts. The information contained within this material should be checked against
information obtained through other means and utilized at the user's discretion.
In no event shall our company or its suppliers be liable for any damages resulting fromthis information. We ask that users make investment decisions at their own discretion.
Furthermore, please be aware that the information presented here may not always reflect
the latest information available.

SENSHU ELECTRIC.,CO.LTD.